News Briefs - April 11
The Latest Headlines:
- Crude Prices Drop on Oversupply Fears
- UPS Considers Doubling Flights to Philippine Hub
- Trucking, Airlines Among Big Winners from Falling Oil Costs
- House OKs $550 Billion Tax Cut, Budget
- House Backs Oil Drilling in Alaska
- UPS Considers Doubling Flights to Philippine Hub
Crude Prices Drop on Oversupply Fears
The price of crude oil fell in trading early Friday after oil officials warned about the possibility of a glut on the world oil market, Bloomberg reported.Members of the Organization of Petroleum Exporting Countries and officials at the International Energy Agency said Thursday that the record production during March may cause an overabundance of oil in the months ahead, Bloomberg said.
In trading on the New York Mercantile Exchange, the price of oil for May delivery was down as much as 29 cents a barrel to $27.17, Bloomberg reported. Transport Topics
UPS Considers Doubling Flights to Philippine Hub
United Parcel Service Inc. said that it may double the number of flights in and out of its hub in the Philippines, Bloomberg reported.The manger of the hub in the Philippines said that he thinks the base in the Asian country should be able to match its expansion rate from last year when it doubled its number of flights to 16, Bloomberg said.
Based in Atlanta, UPS is the largest trucking company in the United States and Canada according to the 2002 Transport Topics 100 listing. Transport Topics
Trucking, Airlines Among Big Winners from Falling Oil Costs
The American Petroleum Institute said that the trucking industry, airlines and chemical companies would likely be among the biggest beneficiaries from recent declines in oil prices, the Washington Post reported Friday.As oil prices have fallen during the war in Iraq, the cost of fuels like diesel, gasoline and jet fuel have helped large consumers like trucking and the airlines. The price of jet fuel, the article said, has dropped 76 cents a gallon over the last five weeks. American Airlines told the Post that ever penny that the price of fuel falls saves the company $30 million a year.
Chemical companies, like DuPont Co., said that the lower oil costs have helped it save on purchases of raw materials, the Post reported.
Diesel prices have also dropped significantly in recent weeks. (Click here for related coverage.)
John C. Felmy, the chief economist at API said that for every $5-a-barrel decline in the price of crude oil, the U.S. gross domestic product could rise by as much as 0.3%, the Post reported. Transport Topics
House OKs $550 Billion Tax Cut, Budget
The House approved a package of tax cuts totaling $550 billion as part of a $2.27 trillion budget, the Associated Press reported Friday.The narrow, partisan vote of 216-211 was held early Friday, AP said.
The bill now goes to the Senate, where it faces an uncertain fate, AP reported. Moderate Republicans, AP said, are not fully behind a tax cut of that size over fears of expanding the federal deficit.
President Bush has been pushing for a large package of tax cuts, even larger than the one prescribed by the House as a method to stimulate the economy. Transport Topics
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House Backs Oil Drilling in Alaska
The House of Representatives backed a plan to drill for oil in the Arctic National Wildlife Refuge in Alaska, the Associated Press said Thursday.In a 228-197 vote, the House defeated a measure to remove a clause that permits oil drilling from an energy bill, AP reported.
A final vote on the bill, which includes incentives for oil and gas development and $18.7 billion in tax breaks, was expected sometime Friday.
Supporters of drilling in ANWR say that by tapping the reserves of oil in Alaska, the United States can reduce its dependence on foreign oil, AP said. Transport Topics
